AR & VR in Healthcare Market Size

AR & VR in Healthcare Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The augmented reality and virtual reality market in the field of medicine is expected to grow significantly, and the market size is expected to reach $ 3.61 billion in 2024, reaching $ 25 billion by 2035. The annual growth rate from 2025 to 2035 is 19.22%, which is significantly higher than the average annual growth rate of the world economy. , driven by the development of the technology and the increasing application of virtual reality and augmented reality in medical education, clinical treatment, and surgical operations. The demand for medical innovation, the need for patient participation, and the increasing number of chronic diseases are driving this market. Medtronic, Philips, and Oculus Health are investing heavily in R & D to develop new applications to improve clinical outcomes. Strategic initiatives, such as cooperation between technology companies and medical institutions, have also accelerated the integration of augmented reality and virtual reality into the medical system. These include the development of virtual reality solutions for mental health and augmented reality applications for surgical training.

Regional Market Size

Regional Deep Dive

The market for augmented reality and virtual reality in healthcare is growing rapidly in various regions of the world, owing to technological advancements, increasing demand for new and effective health care solutions, and the growing need for patient-centric care. In North America, the market is characterized by high R&D expenditure, a robust health care system, and a strong presence of key players. In Europe, the market is expected to witness a significant rise in adoption, owing to the availability of supportive regulations and a focus on improving medical training and patient engagement. Asia-Pacific is expected to emerge as a major market for augmented and virtual reality in the coming years, owing to the increasing expenditure on health care and the rising population. In the Middle East and Africa, the market is expected to grow at a steady pace, owing to the increasing focus of governments on improving health care delivery. Latin America is also beginning to explore the possibilities of augmented and virtual reality, but at a lower pace, owing to the economic difficulties and the varying levels of technological readiness.

North America

• In the recent past, the FDA has approved several applications of AR and VR for therapeutic use, thereby paving the way for greater acceptance and integration into clinical practice.
• AR is also being used for surgical training and patient education, and it is a natural extension of the use of the holodeck.
• The growing number of chronic illnesses in the United States is driving the demand for new treatment solutions. Augmented and virtual reality are being used to monitor and treat patients remotely.

Europe

• The European Union has a programme to promote the use of digital health tools, including augmented and virtual reality, in the context of its strategy to improve the quality and efficiency of care.
• The use of virtual reality for the treatment of pain and mental illness, as well as for the prevention of the occurrence of depression, has already been explored in the United Kingdom by the “Virtual Reality for Health” initiative.
• In Germany and France, for example, extensive research is being done in this field, supported by public-private partnerships that aim to speed up the development and application of these methods in health care.

Asia-Pacific

• China is now the world's leading country in the field of AR and VR medical treatment, and companies such as iFlytek and 3D Medical have been developing a series of augmented reality medical diagnostic products.
• The Indian government has enacted a policy of promoting digital health, which includes the use of AR and VR in medical education and training.
• A new era of telehealth is dawning in Australia, particularly in the country areas, with the integration of AR and VR, which makes it possible to reach out to a specialist, and improve the patient's engagement.

MEA

• The United Arab Emirates has adopted the “Dubai Health Strategy 2021” which includes the integration of virtual reality and augmented reality into health care, aiming to improve patient outcomes and enhance efficiency.
• The use of virtual reality in health care is one of the most important parts of the Kingdom's Vision 2030, which is a plan to develop the Kingdom's digital economy.
• In Africa, the use of virtual and augmented reality is still at an early stage, but experiments are already being carried out in countries like South Africa to demonstrate their potential for medical education and public health.

Latin America

• Brazil is a country that has come to play an important role in the development of the augmented and virtual reality in health, with the emergence of companies like Virtualis, which develops solutions in virtual reality for medical training and rehabilitation.
• The Mexican government is already making a start at integrating digital health technology, including augmented and virtual reality, into the public health system.
• Latin America, despite the economic difficulties, is beginning to see the potential of AR and VR in the treatment of mental illness, as health care workers seek new solutions to the growing mental health problems.

Did You Know?

“Virtual reality has been found to reduce pain by up to 50 percent in patients undergoing medical procedures.” — Journal of Pain Research

Segmental Market Size

Augmented and virtual reality in the medical field is undergoing tremendous growth. It is being driven by the increasing demand for innovative solutions in medical training, the treatment of patients, and surgical planning. The demand is being driven by the increasing need for patient engagement, the rise of telemedicine, and the advancements in augmented and virtual reality that improve learning outcomes and the accuracy of surgical procedures. The regulatory support for the use of AR and VR in the medical field, such as the approval by the Food and Drug Administration of augmented and virtual reality applications for medical purposes, is also helping to drive the growth of this market.

Among the companies that have gotten the hang of AR and VR in the medical field are OssoVR and ImmersiveTouch, which have developed platforms for training surgeons. These are primarily used for surgical simulations, pain management and rehabilitation at the Mayo Clinic and at Stanford University. A macro trend such as the COVID-19 epidemic has accelerated the integration of these technologies, highlighting their potential in remote patient care and medical education. 3D modeling, haptics and AI-driven data analysis are shaping the development of this sector and ensuring its relevance to the future of health care.

Future Outlook

During the period 2024 to 2035, the augmented and virtual reality in the medical field will grow from $3.61 billion to $25.0 billion, at a compound annual growth rate of 19.22%. The growth is driven by the growing use of immersive technology in medical education, treatment and rehabilitation. By 2035, it is expected that augmented and virtual reality applications will have penetrated about 30% of the world's hospitals, mainly driven by the need to increase patient engagement and improve clinical outcomes.

In the field of medicine, the future is bright for AR and VR, which are expected to be further enhanced by the integration of artificial intelligence and machine learning. Moreover, government policies and financial incentives will play a crucial role in driving the market. The advent of telehealth and remote patient monitoring will also spur the use of AR and VR, as medical practitioners and educators seek to improve patient care and training in a post-pandemic world. The industry must be agile and responsive to seize these opportunities and address the challenges of interoperability and data security.